China Stocks end mixed ahead of manufacturing data

The Mainland China shares were mixed on Monday, 28 June 2021, with Shanghai Composite Index settling lower, while the Shanghai Composite Index and CSI300 index managed to end in positive territory, as latest data showed that China's industrial profits slowed again in May due to high base effects and increases in the costs of production. Participants also kept a close eye on manufacturing and non-manufacturing data and the centenary of the founding of China's Communist Party for directional cues.

At closing bell, the benchmark Shanghai Composite Index was down marginal 0.03%, or 1.19 points, to 3,606.37. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.88%, or 21.58 points, to 2,463.66. The blue-chip CSI300 index advanced 0.22%, or 11.79 points, to 5,251.76.

The best performing sectors in the Shanghai Stock Exchange were Building Decoration Engineering (up 6.6%), Livestock Products (up 5.8%), Property & Casualty Insurance (up 5%), Health Care Services (up 4.7%), and Market Services (up 4%), while the worst performing sectors were Coal (down 5.3%), New Energy Power (down 4.6%), Air Freight (down 4.4%), Motorcycle (down 4.3%), and Specialized Finance (down 3.8%).

The best performing sectors in the Shenzhen Stock Exchange were Industrial Conglomerates (up 9.3%), Shoes (up 8.2%), Livestock Products (up 6.8%), Soft Drinks (up 6.2%), and Plastics (up 3.6%), while the worst performing sectors were Coal (down 3.3%), Regional Banks (down 2.8%), Financial Exchanges & Data (down 2.7%), Diversified Banks (down 2.5%), and Other Communications Equipment (down 2.3%).

Three companies debuted on onshore exchanges. Wuxi ETEK Microelectronics soared 328% to 156 yuan from its listing price of 36.48 yuan in Shanghai, while rail transit signal control systems developer Hefei Gocom Information Technology rose 108% to 24 yuan from 11.53 yuan. In Shenzhen, Ningbo Color Master Batch gained 100% to 57.93 yuan from its IPO price of 28.94 yuan.

ECONOMIC NEWS: Profits at China's industrial firms rose 36.4% in May from a year earlier to 829.92 billion yuan, according to National Bureau of Statistics data showed on Sunday. That was a slowdown from the 57% surge reported in April. For the January-May period, industrial firms' profits grew 83.4% from the same period a year earlier to 3.42 trillion yuan.

CURRENCY NEWS: China yuan slightly down against the dollar on Monday, despite firmer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4578 per dollar, firmer by 0.26% from the previous fix of 6.4744. In the spot market, onshore yuan CNY=CFXS was at 6.4623, weaker by 0.11% from the previous late session close of 6.455.

The PBOC injected a net 20 billion yuan through its regular open market operations for the second consecutive trading day on Monday, after breaking a nearly four-month uninterrupted streak of 10 billion yuan daily injections on Friday. Friday's injection pulled the volume-weighted average rate of the benchmark interbank market seven-day repo CN7DRP=CFXS to 1.5250% on Friday. On Monday, the rate edged up to 1.5566%.

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